Magic Software Enterprises (MGIC) Stock: Buy, Sell, or Hold?
$17.38
-2.02 (-10.41%)
▼
5d:
-8.04%
30d:
-34.78%
90d:
-23.23%
QUANTITATIVE VERDICT
HOLD
LOW Confidence (36%)
Quality Score
55/100
Position
FAIR
Forward P/E & Valuation
15.4x
CHEAP
vs 21.8x historical avg
Wall Street Target
$18.00
+3.6% upside
Options IV & Volume
UNKNOWN Vol
UNKNOWN volume confirmation
Support / Resistance
$17.06 / $23.40
Trend: Uptrend
Executive Thesis & Bottom Line
Forward Earnings Fair Value & Price Prediction →
📊 HOLD: MGIC shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
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Interactive Price Chart (1 Month)
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Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$34.06
Based on 6.8% avg growth
INTRINSIC VALUE TODAY
$21.15
17.8% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 21.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: MGIC is currently trading at $17.38, which is considered fair based on recent price action. From a valuation perspective, the stock is trading at a discount (Forward PE: 15.4) compared to its historical average (21.8). Remarkably, the market is currently pricing in an annual earnings decline of 10.9% over the next few years. This pessimistic expectation contrasts with the company's recent 17.6% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, MGIC is in a uptrend. The price is currently testing key support at $17.06. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 10.4% recently.
Market Sentiment: MGIC scores 25/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, MGIC is in a uptrend. The price is currently testing key support at $17.06. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 10.4% recently.
Market Sentiment: MGIC scores 25/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
FAIR
Company Quality Score
55/100
(HOLD)
Volume Confirmation
UNKNOWN
Confidence Score
35.7%
Trading Range & Key Levels
Support Level
$17.06
Resistance Level
$23.40
Current Trend
Uptrend
Technical data as of
Feb 23, 2026
Quantitative Signal Breakdown
- NEUTRAL: Price in fair range
- BEARISH: Weak technical setup (25/100)
- BEARISH: Downward momentum (-10.4%)
- NEUTRAL: Near Wall St target ($18.00)
- CAUTION: 5-day price weakness (-8.0%) - monitor closely
Fundamental Context
Forward P/E (Next Year Est.)
15.41
Wall Street Target
$18.00
(+3.6%)
Revenue Growth (YoY)
13.1%
Earnings Growth (YoY)
17.6%
Profit Margin
6.6%
Valuation Discount vs History
-10.9% cheaper
PE vs Historical
15.4 vs 21.8
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-10.9%
(market-implied from PE analysis)
1-Year Target
$15.64
(-10%)
2-Year Target
$14.08
(-19%)
3-Year Target
$12.67
(-27%)
3-Yr Target (if PE normalizes)
(PE: 15→22)
$17.93
(+3%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.6, Growth: 9.5%)
$33.38
(+92%)
Base:
(SPY PE: 15.4, Growth: 9.5%)
$22.79
(+31%)
Bear:
(PE: 13.1, Growth: 9.5%)
$19.38
(+12%)
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 15.4 to 21.8
Stabilization Target:
$24.59
(+41.5%)
PE Expansion Potential:
+41.5%
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bloggers & journalists: you are free to use our charts with attribution.Reddit & Retail Trader Sentiment (MGIC)
Bullish
1 Retail Mentions
StockTwits Volume
1 msgs
24h retail stream
Last Tracked
Jan 11, 2026
Daily AI digest
AI Retail Discussion Summary:
StockTwits message from a bullish trader with 468 followers expresses interest in $MGIC with a potential for gradual price appreciation.
Key Retail Themes:
Bullish sentiment
Aggregated from r/wallstreetbets, r/stocks & StockTwits streams.
View All Trending Reddit & WSB Stocks →
Last updated: November 12, 2026 1:51 PM ET
Data refreshes hourly during market hours. Next update: 2:51 PM
Data refreshes hourly during market hours. Next update: 2:51 PM
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Technical Signals Check
Is MGIC showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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